Bitcoin (BTC) and Ethereum (ETH) prices have fallen by about 10% and 25% since August, hitting their lowest levels in the last six months. As a result, cryptocurrency investor sentiment appeared to be weakening, moving toward a negative outlook for the market.
Nevertheless, a recent report revealed that most owners remain bullish on the largest cryptocurrencies, despite recent market shocks. Similarly, investor ownership remains stable, and sales of the digital asset have slowed over the past six months.
Investors are hopeful about BTC and ETH
On Tuesday, the global Gemini stock exchange common The 2024 Global State of Crypto Report reveals that investors are still bullish on Bitcoin and Ethereum. The report is based on responses from 6,000 adults surveyed in the U.S., U.K., France, Singapore, and Turkey.
The data indicates that attitudes towards cryptocurrencies are positive among their owners and former owners, with 57% of surveyed investors saying they would not mind including the digital asset in their investment portfolio.
Investor's confidence about digital assets. Source: Gemini
27% of previous owners, or more than one in four, responded positively to the same question, signaling a possibility of re-entering the market. Meanwhile, 62.5% of investors believe the price of BTC and ETH will continue to rise over the next five years.
Similarly, 55% of owners believe there are more reasons to be hopeful about the future of the market than before the crypto winter of 2022.
The majority of surveyed investors were positive about cryptocurrency adoption, with 60.2% believing that many businesses will accept BTC, ETH, and stablecoins as payment methods over the next decade.
Cryptocurrency ownership remains at 2022 levels
Over the past two years, cryptocurrency ownership has remained consistent across the US, UK, and France. However, the percentage of previous owners has increased over the year, suggesting higher ownership numbers before the market decline.
Compared to 2022 data, ownership levels remain the same in the US and UK, while the number of investors exiting the market has increased dramatically. In the US, the rate of previous owners was 5%, compared with 8% in the UK two years ago, according to the report. In 2024, those numbers rose to 14%.
Both countries also reduced their share of non-owners from 75% and 74% to 65% and 68%, respectively. However, the study found that a lack of regulatory clarity is a disadvantage for non-owners, with 38% of respondents in the US and UK citing regulatory concerns as a barrier to entry.
Digital Asset ownership remains steady in most surveyed countries. Source: Gemini
Singapore has seen its ownership rate decline, falling from 30% in 2022 to 26% this year. The report revealed that 75% of previous investors exited the market more than six months ago. Meanwhile, selling activity has slowed significantly in recent months, despite an augment in the number of previous crypto owners.
Likewise, the percentage of current owners who sold their cryptocurrencies during this period is significantly lower than the percentage of investors who sold over a year ago, indicating that investors are holding on to their assets through the market’s booms and busts.
According to the report, former crypto owners are likely to return. Over 70% of surveyed former owners said they are “likely to buy crypto next year,” despite leaving the market during the recession. Former investors “are bullish on the digital asset, signaling they will be ready to buy again.”
Bitcoin is trading at $57,120 in the three-day chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
